Black Monday on Dalal Street,How to trade NF and BNF on RBI day

By | January 27, 2014

FII_1

  • FIIs sold 17978 contracts of Index Future  worth 567  cores (2662 Longs were squared   and 15316 shorts were added ) with net Open Interest increasing by 12654 contracts, so FII’s exited partial longs and added aggressive  shorts.For the month of Jan FII has almost 106829 contract of shorts so any good news on RBI front and Fed can lead to short covering by FII’s.
  • It was Black Monday on Dalal Street with Nifty crashing most in 5 months, Nifty did a failed breakout, and Global Sell off lead to big gap down opening in Nifty. As seen in below chart Nifty took support at the range of 6130-6150 which it has taken from past many times. So ball lies on RBI court, If any positive cues comes Nifty can bounce back from the lower end of range to 6266 odd levels.Unable to hold 6130 Nifty can see a swift fall to 6070 odd levels.

nifty daily

  • Nifty Future January Open Interest Volume is at 1.26 cores with liquidation  of 32 lakhs in Open Interest,longs liquidation going and short addition, 37 lakh got rollovered on Feb series mostly shorts.
  • Total Future & Option trading volume at 2.28  lakh with total contract traded at 3 lakh,PCR (Put to Call Ratio) at 1.14 suggesting lot of Call writing going on. VIX spurted by 18% suggesting volatile time ahead.
  • 6300 Nifty CE  is having highest OI at 52.8  lakhs , remain resistance for the series adding 4.8 lakh,6200 CE added huge 29.5 suggesting bears are confidence that 6200 will not break. 6000-6500 CE added 43.4 Lakh in OI.FII’s sold 8.2 K contracts of CE and 12.1 K shorts were added mostly in 6200 CE.
  • 6100 PE   is having highest OI at  35.3  lakhs, First time in series 6200 PE has liquidated 15 lakhs and is having second highest OI, 6300 PE also liquidated huge 22.2 lakhs,so bulls were caught on backfoot with big gap down, 6000-6500 PE liquidated 46.3  Lakh in OI.FII bought huge 45 K in PE again after today’s fall,
  • FIIs sold 1334  cores in Equity ,and DII bought 151  cores in cash segment.INR closed at 63.1 lowest in 2 months.

Buy above 6152 Tgt 6173,6189,6210 and 6250 (Nifty Spot Levels)

Sell below 6130 Tgt 6106,6093 and 6055 (Nifty Spot Levels)

Live Nifty A/D charts  Click on the Link

Traders who use Pivot and Camarilla can use the following 2 sites for Hourly values and EOD values

 http://camarillapivotpoints.blogspot.com/
http://niftystockpivot.blogspot.in/

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